The Swiss stock exchange’s extensive range of ETFs, offered by a unique mix of large and smaller providers from both Switzerland and abroad, covers a wide spectrum of investment needs.
The Swiss stock exchange continues to cement itself as a leading global ETF (Exchange Traded Fund) destination, with 1'500 ETFs now listed on the exchange, a new milestone representing a massive increase in its product offering since 2015, when there were 1'000 ETFs listed. As a result, Switzerland currently ranks among the top three ETF venues in Europe, an accomplishment that was undoubtedly enabled by the decision of SIX to enter the market and list its first ETF back in 2000 and with this earlier than some of its 26 European peers.
Steady increase of ETF trading volumes
Not only the number of available ETFs kept growing at SIX, but also ETF trading volumes rose exponentially since the launch of the ETF trading segment – in the year 2011 exceeding CHF 100 billion trading turnover currently accounting for more than 7% of the total trading turnover of the Swiss stock exchange. For the last four years, there have been one million ETF trades executed each year. In 2018, SIX saw a strong growth of 274 new ETF listings, buoyed by the USD 5.4 trillion assets managed in ETFs globally, experiencing continuous and sizeable investor inflows, with $USD 56 billion entering European ETFs alone last year. Many investors are being drawn towards ETFs (and other passive fund strategies) due to their recent positive performance, superior transparency, cost-efficiency, easy access and liquidity advantages.
Broad and niche range of asset class offering
SIX data also found investor demand is greatest for ETFs tracking developed market equities, although interest in thematic ETFs is growing when looking at the past two years. Sustainable ETFs are increasingly popular and the 1’500th ETF listed addresses this investor base, being a product from UBS on the S&P 500 ESG index. Elsewhere, smart beta products presently comprise 8% of ETF trading at SIX, a figure that continues to rise and many new product providers enter the market with alternatively weighted products. In addition, there are now 28 active ETF products operated by five different providers listed at SIX, accounting for approximately 1% of total ETF trading turnover on the exchange. 90 ETFs are exclusively listed at SIX, mainly products on precious metals, allowing investors to further diversify their portfolios.
The ETF success story
SIX has experienced remarkable growth in ETF listings since it first launched its ETF segment in September 2000 with two products on STOXX indices that after only five months were followed by the first ETF on the SMI, the leading Swiss Market Index, steadily one of the top trading products at SIX.
"That SIX is now one of the top ETF listing destinations in Europe and a global leader in its own right is testament to the exchange’s innovation, commitment and expertise. The 1'500 listed ETFs at SIX mark another milestone in the almost 20 year success story of this segment. We would like to express our sincere thanks to our clients - product providers, market makers and investors," said Christian Reuss, Head Sales, Securities & Exchanges, SIX.
"I would like to personally - and also on behalf of UBS Asset Management Passive & ETF Solutions - congratulate SIX for its dedication to the expansion of its ETF listing platform which has now reached the 1500 mark. SIX has been and remains a vital counterparty for the continued success of our business. The 1500th ETF happens, through sheer chance, to be the sustainability focused variant of the world`s most tracked index, the S&P 500. We thank and praise SIX for their collaboration and valued contribution in bringing the UBS ETF S&P 500 ESG to one of EMEA’s most important trading venues," said Clemens Reuter, Global Head ETF & Passive Investment Specialists, UBS Asset Management.
(press release SIX Group)